If he's registered for vat then he has to charge it and pay it.
The threshold is the point at which you HAVE to register for vat, but if you voluntarily register then charging and paying VAT is not an optional thing.

Edit - it's not clear if you know the rate he's charging, but it wouldn't be unusual for an IT consultant to pass the threshold whilst working for a single client.

If he works for 46 works a year, 5 days a week at a rate of £360/day then he'll reach that threshold.

You do not have to have a minimum turnover to register for VAT, just that if your turnover is 83 k, or whatever the limit is, you MUST register. He will still have to complete regular VAT returns, so don't worry, as far as I know, he is legit.

You can register for VAT voluntarily (even when below the aforementioned threshold). Many businesses do, for many reasons, especially if they sell things on top of providing services. I.E. to claim VAT back on purchases you have to be VAT registered, so if you're selling goods, it sometimes makes sense to voluntarily register for VAT so you can claim the VAT back on the purchase price. This is especially true when a company is dealing exclusively with business and private sector customers (who can themselves claim the VAT back).

Strictly speaking if he only has one customer then he is technically an employee of that company and should be on their payroll

I think that only applies if he can't pick and chose whether to work or not and he isn't allowed to work for / offer services for other companies. I don't know the finer points but the guidance is here:

When I hire a plasterer, they have only 1 customer for the days that I'm hiring them. But I don't become their employer and that's true even if I hire them through my company.

You are not comparing like with like Cyclone. A plasterer will not only ever work for you will they? They will go on to do other jobs. If you look at the HMRC definition quite a few people currently working as self employed should be an employee. Have a look at the link further up the thread I added for the definition.

Nobody said "ever" with regards to the OP either. The OP says "sole customer", which is pretty much how most consultants or IT contractors work, sole customer at a time, from weeks to years, but not for ever and without employment.

I'm very aware of IR35 legislation since it directly affects me. I've worked for a single client for 15 months now, but that doesn't make me an employee.

Nobody said "ever" with regards to the OP either. The OP says "sole customer", which is pretty much how most consultants or IT contractors work, sole customer at a time, from weeks to years, but not for ever and without employment.

I'm very aware of IR35 legislation since it directly affects me. I've worked for a single client for 15 months now, but that doesn't make me an employee.

You seem to misunderstand something unless you are being deliberately obtuse. Your post talks about a plasterer working for you.....the plasterer would have to work just for you and not be allowed to work elsewhere if they choose to be classed as an employee, hence me saying you are not comparing like with like, its not a good example to use. You seem to be missing the point stated in the guidance.

If you are not allowed to work for anyone else during that time, depending on the other criteria, as detailed in the guidance, you could be classed as an employee. I don't know your full T&Cs of your contract. There are several such cases been highlighted in the news recently where people have had to set up as self employed when they should be employed.

You're right, badly phrased details not correct, was just trying to illustrate how I thought said "consultant" might be looking to achieve increase in real world income.

Looked into this in 2014 at suggestion of a friend, he gave me examples of how it worked in his industry. No good for me, but still seems credible... If you found yourself in an advantageous position within your deemed category ?

Suppose other reasons for VAT reg could be insistence of a client / middleman maybe with the option of using their "umbrella scheme" instead of going through the paperwork. Had that one pulled on me a few times, but that's another story....

Late to thread but ...... Could be to do with FRV, have you heard of this ?

Not sure if the rules have changed on it, but it is/was offered to make VAT accounting easy for small businesses.

You charge 20% to client you pay 15% to HMRC

The 5% difference was to allow for your purchase of tools, equipment, premises or any other expense

A consultant could in theory only need their knowledge and expertise, a laptop, maybe some trade body subs, insurance or whatever so let's say that eats 2% of the benefit

On 60k revenue, that's an extra £1800 freed up, so if they're a director of their own ltd. company that could equate to £1350 in pocket that year !

Not bad going for some inherently easy accounting !

But if you are living away during the week you will be in hotels - that's VAT on the hotel you cannot recover. You cannot recover it on books (which are VAT-ed if electronic or if they have software), nor on subsistence etc...

The flat rate scheme used to be good but it's less valuable than before..

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Looks like Farage wants a second referendum... is he worried he's insecure...?

But if you are living away during the week you will be in hotels - that's VAT on the hotel you cannot recover. You cannot recover it on books (which are VAT-ed if electronic or if they have software), nor on subsistence etc...

The flat rate scheme used to be good but it's less valuable than before..

It's very much less valuable since they adjusted the rates.
In IT at least there is absolutely no advantage to gain anymore.